Israel and the United Arab Emirates have opened talks over an oil pipeline linking the Red Sea with the Mediterranean and whose operations Israeli officials treat as top secret.
Europe Asia Pipeline Co., controlled by Israel’s government, and UAE-based MED-RED Land Bridge Ltd. signed a memorandum of understanding to collaborate on the transportation of crude and oil products between the Persian Gulf and Western markets, according to an EAPC statement on Tuesday.
The agreement comes after the UAE, OPEC’s third-biggest oil producer, and Israel announced in August they would normalize ties. The two have since discussed establishing embassies, starting direct flights and business deals.
EAPC operates the Eilat-Ashkelon pipeline, built by Israel and Iran in the 1960s. It has a capacity of 600,000 barrels a day and almost 23 million barrels of storage space. Most oil sent from the Gulf to Europe is either shipped through the Suez Canal or via Egypt’s Sumed pipeline, which can pump 2.5 million barrels daily.
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